Fiduciary financial advisor in St. Clair County, IL. For those in St. Clair County, IL who lack the free time, knowledge, or inclination to manage their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is crucial in that partnership, and whether you're preparing for retirement, looking to grow your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor matter greatly. By choosing a fiduciary financial advisor in St. Clair County, IL, you'll gain a ally who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our St. Clair County, IL fiduciary financial advisors won't ever propose a solution, investment, or approach that we do not sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule an appointment with on of our advisors.
About Fiduciaries
A fiduciary is a individual or entity that holds a position of confidence and responsibility when overseeing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically bound to work in the best interests of the individual or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — Individuals or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to manage the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to emphasize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to work in the best interests of their clients when managing their cases.
- Real estate agents — Specialists who assist clients in buying, selling, or renting properties and are required to act in the best interests of their clients in real estate transactions.
Good Faith, Duty of Loyalty, and Duty of Care
There are three important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they deal with their clients or beneficiaries honestly, with sincerity, and without any intention to mislead or damage the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must put first the beneficiary's interests above their own. They must eschew any conflicts of interest that might impair their ability to act exclusively in the client's best interests. Any conflicts of interest must be revealed to the client and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a wise person would employ in comparable circumstances. They must make informed and thoughtful decisions when managing assets or making decisions on behalf of their client. This duty confirms that they work diligently to shield and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in St. Clair County, IL?
Financial advisors help St. Clair County, IL individuals, families, and business owners achieve their life goals by means of a array of financial services and suggestions. These services comprise investment choices, retirement consulting, tax planning, estate planning, asset management and more.
Any person in St. Clair County, IL can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications demand persistent education and a rigorous moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to comply with the CFP Board's Code of Ethics and Standards of Conduct to:
- Act with honesty, integrity, competence, and diligence
- Act in the client’s best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Maintain the confidentiality and protect the privacy of client information
- Act in a manner that reflects positively on the financial planning profession and CFP® certification
Are All Financial Advisors in St. Clair County, IL Fiduciaries?
Not all financial advisor in St. Clair County, IL are fiduciaries. The key reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which requires recommendations to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation associated with product sales, which means they might make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a sensible person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you have
- Your needs for readily available funds, income, and preservation of capital
- An asset's distinctive relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Clair County, IL
Deciding to work with a fiduciary financial advisor in St. Clair County, IL brings to the table an array of advantages that can significantly influence your monetary health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Total disclosure of relevant materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your St. Clair County, IL family
- Manage investments on your behalf utilizing their expertise to craft and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to create a custom approach
- Consistent monitoring and advice to ensure your financial tactics and investments remain on track and that you can adjust to any unexpected situations the market or life presents your way
- Reduced risk with wise and responsible investment choices made by carefully assessing the risk tied to each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being watched over by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life conditions change
Choose Correct Capital as Your St. Clair County, IL Fiduciary Financial Advisor
Choosing a financial advisor in St. Clair County, IL with a fiduciary duty is vital to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of St. Clair County, IL individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications necessary to guide you on your financial journey. We offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Contact us today at 877-930-4015 or contact us online to arrange an appointment and discover how we can assist you attain your financial goals in St. Clair County, IL.
